02 February 2008
my client give services to various customers as a cable operator its gross receipt is as follows total gross receipt- 729000 less entertainment tax 44600 net gross receipt 684400 whether he is liable to give intimation to the service tax department or not because his total receipts are in excess of rs.700000/- but entertainment tax is govt tax is deductable
04 February 2008
Circular B.11/1/2002 dated 1/8/2002
Calrifies that entertainment tax collected and paid to the government will not be included in the value of taxable services , provided the cable operation clearly indicates the entertainment tax element in his bills to customers.
Since this tax is not shown separately in the collection receipt it forms a part of taxable income
CAclubindia
